What is Zero Defect – Zero Effect (ZED) scheme? How it can boost India's MSME sector?
Zero defect and zero affect (ZED) aims to achieve a twin goal of production of high quality products with clean technology. ZED Scheme aims to rate and handhold all MSMEs to deliver top quality products using clean technology. It will have sector-specific parameters for each industry.
Zero defects will provide with high quality products for consumers and zero effect provides with minimal pollution of the environment. Thus scripting a new role for MSMEs according to changing socio-economic scenario
Significance of ZED for MSME sector
- Enhancing the global and the domestic competitiveness of the manufacturing sector so has to broaden the customer base.
- ZED will act as a catalyst to accomplish the goals under Make in India. i.e increasing the contribution of manufacturing sector to 25% of the GDP and creating 100 million employment.
- ZED will enhance the productivity and efficiency of MSMEs. Thus enhancing their cost competitiveness and will result in increased profits.
- ZED will also aid in attracting investments as there is increasing awareness across the world for protecting the environment by curbing pollution.
ZED being implemented by quality council of India ensures both capacity building and handholding of MSMEs together with assessment and rating of MSMEs in line with the global best practices and benchmarking. This can aid India in becoming part of the global supply chain and to emerge as manufacturing hub of the world.
What is Zero Defect – Zero Effect (ZED) scheme? How it can boost India’s MSME sector? [THBL]
Published: March 5, 2018 | Modified:June 27, 2019